The US economy has an incredible track record of producing the most valuable companies in the world. American steel became the very first $1 billion company in 1901, and 117 years later, in 2018, Apple became the first company in the world to reach a valuation of $1 trillion.
Apple is now worth over $3.7 trillion, and six other tech companies have joined the trillion-dollar club: Microsoft, Amazon, Alphabet, Metaplatforms, TeslaAnd Nvidia. But I think someone else could earn their membership soon.
Oracle (NYSE: ORCL) was founded in 1977 and has participated in virtually every technological revolution since. Now it is quickly becoming a leader in artificial intelligence (AI) data center infrastructure, which could catapult the company to a $1 trillion valuation in less than a decade.
Oracle’s market cap currently stands at $492 billion, so investors who buy shares today could double their money if the company joins the trillion-dollar club.
Large Language Models (LLMs) are the foundation of every AI chatbot and software application. Developers continue to build larger LLMs to make AI software “smarter,” but it is a very expensive exercise that requires data centers filled with thousands of graphics processing units (GPUs).
Nvidia provides the world’s most powerful GPUs for AI development. The more a developer has access to, the more data their LLMs can ingest and process. Oracle Cloud Infrastructure (OCI) Supercluster technology allows developers to scale to 65,000 Nvidia H200 GPUs, the highest in the industry.
But Oracle is about to go one step further. The company is currently building new clusters that will allow developers to use up to 131,000 of Nvidia’s latest Blackwell GPUs.
OCI’s Random Direct Memory Access (RDMA) technology is also much faster than traditional Ethernet networks when it comes to moving data from one point to another. Because most developers rent computing capacity by the minute, faster processing translates into significant cost savings. That’s why Oracle has attracted leading AI startups like xAI, OpenAI, Cohere and more.
During the second quarter of 2025 (which ended October 31), Oracle said GPU usage increased by a whopping 336% compared to the year-ago period, highlighting how quickly demand for AI infrastructure is rising. The company currently has 98 data center regions in operation, but plans to build an additional 1,000 to 2,000 in the long term to meet demand.
Oracle generated total revenue of $14.1 billion in the second quarter, up 9% from the same period a year ago. But OCI revenues in particular rose by as much as 52% to a record $2.4 billion. That was the fastest growth rate in a year, and it marked the second consecutive quarter of acceleration after a brief dip:
Simply put, OCI revenues would grow even faster if more data centers were active. Although the company is building them as quickly as possible, it is still struggling to meet demand.
That’s one reason why Oracle’s remaining performance obligations (RPOs) rose 50% year over year to $97 billion in the second quarter. RPOs are like a backlog of orders that should be converted into revenue in the future once Oracle can deliver the agreed-upon services. CEO Safra Catz said RPOs will continue to rise from here on out, citing a recent deal Oracle signed with Meta Platforms.
Meta developed the world’s most popular open-source LLMs, called Llama, which have been downloaded more than 600 million times. The company will move some of its training workload to Oracle’s infrastructure, and the two companies will work together to build AI agents using Llama. It’s a huge win for Oracle, as Llama 4 could be the most advanced model in the industry when it launches next year (according to Meta CEO Mark Zuckerberg).
Oracle has generated $4.09 in earnings per share (EPS) over the last four quarters, so based on the share price of $177.74 at the time of writing, it is trading at a price-to-earnings (P/E) ratio of 43.4 . That’s not exactly cheap considering Nasdaq-100 The technology index trades at a price-to-earnings ratio of just 33.9.
However, Oracle grew its earnings per share by 24% in the second quarter, the fastest pace in almost a year. The company’s data centers are highly automated, making them incredibly cheap to operate and therefore have high profit margins. As more come online, economies of scale should result in very strong growth in Oracle’s revenues.
Mathematically speaking, Oracle’s market cap could cross the $1 trillion mark within a decade if earnings per share grow 7.3% annually (assuming the current price-to-earnings ratio remains constant). As the company plans to expand its data center footprint tenfold As of now, I think earnings per share growth will accelerate rather than slow down over the next decade.
Therefore, 10 years is a terribly conservative time frame for Oracle to join the $1 trillion club. If earnings per share maintain at least 20% growth, this could happen in less than four years.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no positions in the stocks mentioned. The Motley Fool holds positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Oracle and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
1 Unstoppable Stock That Could Join Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta and Tesla in the $1 Trillion Club was originally published by The Motley Fool
